EMPTY STATE
COMPARISON TOOL

Unilever 69/100

(LSE:ULVR) 1 of 38 (2018)

Unilever plc (Unilever) ranks first out of 38 companies, disclosing significantly more information on its forced labor policies and practices than its peers across all themes. Compared to 2016, the company improved its score by four points by disclosing efforts undertaken across various themes. Most notably, the company developed and disclosed a grievance mechanism for its palm oil supply chains and trainings on forced labor for suppliers across sourcing countries and tiers. The company achieves the highest scores on the themes of recruitment and worker voice. For example, the company discloses the positive impacts of engaging workers in its supply chains and provides several examples of how it supported freedom of association in its supply chains. KnowTheChain identified one allegation of forced labor in the company's supply chains. The company provided five public responses regarding the allegation and outlines the steps taken by itself and its supplier to improve processes. However, Unilever does not disclose remedy outcomes for workers. Additional steps the company could take to address forced labor risks in its supply chains include strengthening its disclosure and practices on the themes of worker voice, monitoring, and remedy, and expanding existing systems to additional commodities at risk of forced labor.

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69 /100

2018 Ranking: 1 of 38

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65

Unilever was evaluated both in 2016, when it ranked first out of 20 companies, and in 2018, when it maintained its first rank out of 38 companies. Despite a strengthened methodology which makes it harder to achieve the same score, the company has improved its score by four points since 2016, to 69/100, by disclosing efforts undertaken across various themes. For example, the company developed and disclosed a grievance mechanism for its palm oil supply chains and discloses the positive impacts of engaging workers in its supply chains.

2016 BENCHMARK

69

The average score for the sector was 30/100, matching the average score in the 2016 benchmark. Compared to 2016, the number of companies assessed in 2018 increased from 20 to 38. Since 2016 the methodology has been strengthened, making it harder for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 30/100 to 33/100, which is positive given the changes to the methodology.

METHODOLOGY

2016

65

Unilever was evaluated both in 2016, when it ranked first out of 20 companies, and in 2018, when it maintained its first rank out of 38 companies. Despite a strengthened methodology which makes it harder to achieve the same score, the company has improved its score by four points since 2016, to 69/100, by disclosing efforts undertaken across various themes. For example, the company developed and disclosed a grievance mechanism for its palm oil supply chains and discloses the positive impacts of engaging workers in its supply chains.

2016BENCHMARK

2018

69

The average score for the sector was 30/100, matching the average score in the 2016 benchmark. Compared to 2016, the number of companies assessed in 2018 increased from 20 to 38. Since 2016 the methodology has been strengthened, making it harder for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 30/100 to 33/100, which is positive given the changes to the methodology.

METHODOLOGY

THEME AND INDICATOR SCORE

The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains. There are a total of 23 indicators across the seven themes. For each theme, a company can score a total of 100 points.

Commitment and Governance

This theme evaluates a company's commitment to addressing forced labor, whether it discloses supply chain standards, and to what extent it has management processes and board oversight, training programs, and engagement with stakeholders on forced labor in place.

OVERALL 93
INDICATORS
Commitment
100
Supply Chain Standards
90
Management and Accountability
100
Training
100
Stakeholder Engagement
75

Traceability and Risk Assessment

This theme measures the extent to which a company demonstrates an understanding of its suppliers and their workforce by disclosing relevant information (such as supplier names or sourcing countries) and assesses and discloses forced labor risks across its supply chains.

OVERALL 69
Traceability
37.5
Risk Assessment
100

Purchasing Practices

This theme assesses to what extent a company adopts responsible purchasing practices (such as providing price premiums and procurement incentives) and integrates supply chain standards into supplier selection and supplier contracts, and whether it cascades them down the supply chain.

OVERALL 78
Purchasing Practices
60
Supplier Selection
100
Integration into Supplier Contracts
100
Cascading Standards through the Supply Chain
50

Recruitment

This theme measures a company's approach to reducing the risk of exploitation of supply chain workers by recruitment agencies, eliminating workers' payment of fees during recruitment processes throughout its supply chains, and protecting the rights of migrant workers.

OVERALL 71
Recruitment Approach
45
Recruitment Fees
75
Monitoring and Ethical Recruitment
100
Migrant Worker Rights
62.5

Worker Voice

This theme measures the extent to which a company engages with workers in its supply chains, enables freedom of association, and ensures access to effective and trusted grievance mechanisms.

OVERALL 65
INDICATORS
Communication of Policies
50
Worker Voice
75
Freedom of Association
75
Grievance Mechanism
60

Monitoring

This theme evaluates a company's process for auditing suppliers (including whether audits include non-scheduled visits, review relevant documents such as wage slips or contracts, interview workers, and audit lower-tier suppliers) and providing disclosure on the outcomes of supplier audits.

OVERALL 45
Auditing Process
60
Audit Disclosure
30

Remedy

This theme measures the extent to which a company has corrective action plan processes for non-compliant suppliers and ensures remedy is provided to workers in its supply chains who are victims of forced labor. Publicly available allegations of forced labor in a company's supply chains that occurred in the past three years, and how a company has responded to and addressed those allegations, are also assessed as part of this theme.

OVERALL 63
Corrective Action Plans
100
Remedy Programs and Response to Allegations
25

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